Does seller concentration in a market raise prices? Many attempts have been made to test this classic hypothesis of oligopoly theory, none of them convincing. Leonard Weiss and his colleagues have devised and applied a systematic set of direct tests of the concentration price hypothesis. In an innovative series of empirical studies, they examine the effect of concentration on price for the same item sold in markets that vary because of space, time, or transaction. They conclude that concentration does indeed tend to raise price.Studies in the book's first part test specific aspects of the concentration price hypothesis. These include a case study of Portland cement deregulated fares, the relation between change in price and change in concentration in the US and in the EEC, the effect of the numbers of bidders in auctions, and the effects of concentration on wages.The book's second part brings together for the first time previously published and widely scattered studies of the concentration price relationship in advertising media, retailing, the railroads, livestock purchasing, and banking. Viewed together, they provide powerful support for the role of concentration in determining price.Leonard W. Weiss is Professor of Economics at the University of Wisconsin, Madison.
Includes bibliographical references
Price levels and seller concentration : the case of Portland Cement / Roland H. Koller II and Leonard W. Weiss -- Change in concentration, change in cost, change in demand, and change in price / Christina M.L. Kelton and Leonard W. Weiss -- The price effects of increased competition in auction markets / Lance Brannman, J. Douglass Klein, and Leonard W. Weiss -- Concentration and wages : direct and indirect effects / Dale Belman and Leonard W. Weiss -- Industry competition and the formation of the European Common market / Hideki Yamawaki, Leo Sleuwaegen, and Leonard W. Weiss -- Concentration and the price of advertising space and time: The Stigler study. Newspaper advertising rates / James M. Ferguson. Concentration and the price of local television advertising time / Harry Bloch and Michael O. Wirth -- Deregulated airlines: Other people's studies. Competition in deregulated air fares / Robert Town and Scott Milliman
Entry into deregulated airline markets / Steven Berry -- Retailing: Concentration and price in gasoline retailing / Howard P. Marvel. The concentration-price relationship in food retailing / Bruce W. Marion -- Railroad freight rates: The effects of concentration and cartels on nineteenth-century railroad freight rates / Hugh Briggs. Concentration and railroad pricing / James M. MacDonald -- Buyer concentration and cattle prices: Live cattle prices and packer-buyer concentration / Bruce W. Marion and Frederick Geithman -- Banking: A review of concentration-price studies in banking / Leonard W. Weiss. Deposit interest rates and local market concentration / Allen N. Berger and Timothy H. Hannan
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